SF 35 (LSB 1452XS (2) 86)

SENATE FILE 35

BY  BOWMAN

A BILL FOR

An Act concerning the hybrid formula for calculating benefits under the Iowa public employees’ retirement system.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 97B.49D, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  An active or inactive vested member, who is or has been employed in both special service and regular service, who retires on or after July 1, 2015, who is vested by service, who has at least twenty-two years of special service or thirty years of regular service, and who at the time of retirement is at least fifty-five years of age, may elect to receive, in lieu of the receipt of a monthly retirement allowance as calculated pursuant to subsection 1 or sections 97B.49A through 97B.49C, a monthly retirement allowance calculated as follows:
   a.  For an active or inactive vested member with at least thirty years of regular service, years of special service shall be considered years of regular service for purposes of calculating a monthly retirement allowance pursuant to section 97B.49A.
   b.  For an active or inactive vested member with at least twenty-two years of special service in a position defined in section 97B.49B, years of regular service or years of special service in a position defined in section 97B.49C shall be considered years of special service in a position defined in section 97B.49B for purposes of calculating a monthly retirement allowance pursuant to section 97B.49B.
   c.  For an active or inactive vested member with at least twenty-two years of special service in a position defined in section 97B.49C, years of regular service or years of special service in a position defined in section 97B.49B shall be considered years of special service in a position defined in section 97B.49C for purposes of calculating a monthly retirement allowance pursuant to section 97B.49C.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill concerns the Iowa public employees’ retirement system (IPERS) and provides an additional method of calculating a member’s monthly retirement allowance using the hybrid formula under Code section 97B.49D. The bill provides that a vested member who retires on or after July 1, 2015, with at least 22 years of special service in a position defined in Code section 97B.49B, at least 22 years of special service in a position defined in Code section 97B.49C, or at least 30 years of regular service, can have their retirement allowance calculated as if years of service not within the applicable category categorized as years of service in the position with at least 22 or 30 years of service, as applicable, may be counted as years of service in that category. Under current law, these members are not eligible to use the hybrid formula.